capital costs on some projects, for it has the effect of freeing an ore ship from the necessity of loading and unloading along a dock where deep water is available. It is too early to assess accurately its potential but it may be very great indeed. We are primarily relying on improved earnings from Utah's mining operations, especially coal, to carry the 1970 earnings figures above those of 1969. Blackwater results are almost certain to improve. Coal shipments at Navajo will increase substantially. Last year they did not come up to expectations because the new generating unit completed in May has only recently performed on a sustained basis at rated capacity because of difficulties in the ash disposal system. Hopefully these are now or soon will be corrected and the second unit scheduled for 1970 will be free of this problem. In our company, quarterly comparisons are sometimes misleading and not consistent with annual trends. But adding it all up, we do expect our 1970 earning to run ahead of 1969, although we do not anticipate that the rate of increase will reach that registered by 1969 over 1968. So we face the 70's with confidence that the program on which we are launched will bring about increased earnings in the first half and confidence that the management has the ingenuity to meet the challenges that will come for the last half of the 70's. The problem changes when the present heavy outflow of cash becomes a heavy inflow of cash that we expect the new expansion programs to produce. Payouts in our business are relatively rapid and we face the prospect down the road of having to come up with new profit opportunities in order to put -13-